On-grid inverters, also known as grid-tie inverters, are designed to work directly with the power grid, converting DC electricity from the electrical source into AC electricity and feeding it into the utility system. These inverters don’t have charge controllers and cannot be used with battery storage, relying instead on real-time energy generation. Additionally, this type of inverter automatically shuts down during power outages to prevent islanding, ensuring worker safety and maintaining grid stability.

Off-grid inverters, also known as stand-alone inverters, operate independently from the power grid, drawing energy from batteries charged by solar panels or other renewable sources. These systems require charge controllers to regulate battery charging and prevent overcharging or deep discharging, and they typically include one or more built-in charge controllers. They can integrate backup generators, such as a utility input or a gas generator. However, they cannot send excess energy to the grid, making them ideal for remote locations or standalone energy solutions.

Hybrid inverters combine the features of both on-grid and off-grid systems, allowing bidirectional energy flow with the power grid. They support self-consumption by using stored solar energy in batteries first, only drawing from the grid when needed. Additionally, they can export excess power to the grid when available. Hybrid inverters provide greater energy independence and are especially beneficial in areas with unstable grid connections.

Microinverters are compact inverters installed on individual solar panels or pairs of panels, converting DC electricity into AC at the panel level. Unlike string inverters, which manage multiple panels at once, microinverters optimize performance per panel, reducing the impact of shading or panel mismatches. While they primarily function as on-grid inverters, they can be integrated with battery storage systems using AC coupling methods, enhancing system flexibility.